Trade Aptitude
Results of Wednesday’s Best S&P Turning Points: Once again, the suggested buy @ 3925.75 triggered in the Globex session and is currently open with 22 points favorable excursion. Read yesterday’s blog for exit ideas on entries that trigger when you’re sleeping.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Buy 3892.50 stop 3887.50. Short 3981.50 stop 3987.00.
The World Sentiment Index: (+100/-100) PLUMMETS from +64 to -14 in a world of mixed sentiment and low volatility. Historically price closed above the open 63% of the time.
Catalysts: Jobless Claims & Productivity/Costs @ 8:30.
Quick Tip: Anchored VWAP
If you’re looking for a new trading approach using a technical indicator I highly recommend Brian Shannon’s new book “Anchored VWAP.”
VWAP means Volume Weighted Average Price. This common version of the indicator is available on many trading platforms. Essentially, it starts calculating at the open of the market and combines price, time & volume to determine the average price.
Brokers use this price to demonstrate to their big institutional clients that the orders they filled were “better” than the VWAP for the day (hopefully). Clients like that. Shannon does a much better job of describing who, how, and why this is a critical technical analysis tool. Understanding how very large orders get filled is essential.
What Shannon’s version does differently is the selection of the starting point. Rather than always using the open of the day, you can “anchor” the start to any chart feature, like a gap, a high/low, earnings release or pivot. I’ve found it very useful for both trend confirmation and am documenting results for a few other ideas I have.
If you’re a TradeStation user it’s available for a modest $100 at https://www.thevwap.com.
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Mike Siewruk